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Edit VAT rate in QuickBooks Online

Did you get a notice that your VAT rate is changing and you are using custom tax rates in QuickBooks Online? Here's how to update them:

To edit VAT rates:

  1. From the left menu, select VAT.
  2. In the top right-hand corner, select Edit VAT and then Edit rates.
  3. In the tax rate table, choose the rate you want to change and select Edit.
  4. In the Edit tax rate window, change the rate. You can also change the name if you like.
  5. Set the Effective date, if required, this will be the date from which the rate change will take effect, then Save.
  6. Select On or Off beside the tax rate you want to make active or inactive.
  7. To confirm your changes select Yes.
  8. Note: Changes to the tax rate will apply to any future transactions you add it to. If you need to change the tax rate for an existing transaction, open that transaction and edit the rate manually.

What happens when you edit a VAT rate

  • When you edit a rate, you must set an effective date i.e date from which the new rate must be effective
  • The new rate will be available for new transactions entered after the Effective date
  • If you create a new transaction dated before the set Effective date, the transaction uses the old rate
  • If you don't set an Effective date while editing a rate the earlier rate can no longer be used even for past dated transactions
  • Existing transactions that used the earlier rate remain unchanged unless you edit the transaction and specifically select a different sales tax rate.
  • For recurring templates that use the changed component, new transactions created with the template use the new rate. Existing transactions created with the template and the earlier rate remain unchanged
  • Reports show the data for both rates (before and after) if there are transactions for both the rates in a particular period


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